August 30, 2008

Baosteel acquires a 92.5%stake in Nantong Steel

Interfax China reported that Shanghai listed Baoshan Iron and Steel Company Ltd has acquired a 92.5% stake in Baosteel Nantong Iron and Steel Company Ltd for CNY 601 million (USD 80.04 million).

Baosteel and Nantong Steel both are subsidiaries of Baoshan Iron and Steel Group China's largest steel maker. In early August 2007 Baosteel Group put the 92.5% stake in Nantong Steel up for auction on the Shanghai United Assets and Equity Exchange.

Though a transfer kept within one of the Baosteel Group's subsidiaries was preferable, the company had stated that it would consider non Baosteel bidders.

Baosteel made the bid for the stake transfer on the grounds that Nantong Steel, which has an annual output capacity of 1 million tonnes of steel billet would serve as a useful billet production base for Baosteel's seamless steel pipe production.

Nantong Steel established in December 1994, specializes in the production and sales of reinforced steel, round steel, profile steel and steel billet.